marketing Flashcards
what is the purpose of marketing?
is to make new customers aware of your product and to remind existing customers about your product
define marketing
a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers
what is the marketing approach
placing customers at the centre of product design, development and testing to ensure their needs are met
define target market
is a group of potential or existing customers with similar features/characteristics
what are the 3 approaches to selecting a target market?
mass marketing, market segmentation, niche marketing
what is mass marketing
the business targets its product at the whole market/population
what is market segmentation
the business targets the whole market, but subdivides this into smaller market e.g. by demographics
what is niche marketing
the business targets a small market by specific demographic qualities
define market segmentation
when the total market is subdivided into groups of people who share one or more common characteristic
what are some examples of products mass marketed
utilities (gas, electricity, water) and basic food items (milk, bread - although the increase in variety means these too are becoming more segmented
how are products priced and promoted in market segmentation?
demographic (population characteristics)
geographic (where people live)
psychographic (personality characteristics)
behavioural (loyalty to a product)
define consumer buying behaviour
when the total market is subdivided into groups of people who share one or more common characteristic
define primary target market
the market segment at which most of the marketing resources are directed
define secondary target market
usually a smaller and less important market segment
define niche marketing
businesses choose to target a narrow segment of the market only
why would a business do niche marketing
because it allows them to specialise in products they know very well and cause customers will seek out niche businesses where they need advice and knowledge before choosing a product
what is the marketing mix
consists of price, place, product, promotion that make up the overall marketing strategy
in products, what are marketing management are interested in?
product, packaging, product branding, product positioning
what is the purpose of product packaging
not only preserve, inform and protect the product, it also creates a positive impression of the product to create an image of luxury and exclusivity
what is a brand
a brand is a name, term, symbol or design that identifies a product and differentiates it from its competitors
how do businesses protect their branding
brands are generally protected by copyright or registered trademark to prevent other businesses from using or copying them
define product positioning
refers to the development of a particular ‘image’ for a product against its competitors; normally linked to intangible benefits
what is the total product concept
customers are sold the tangible and intangible benefits of a product
what are the three pricing methods
cost-based, market-based, competition-based
what is cost-based pricing
price is set at cost price plus a profit percentage
what is market-based pricing
price depends on the demand for the product
what is competition-based pricing
price is set according to what competitors are sell for (above, below or equal to)
define promotion
refers to the method(s) used to inform, persuade and remind customers about a product
what is the aim of promotion
attract new customers, increase product (brand loyalty), encourage existing customers to buy more
what is the promotion mix
personal selling, advertising, sale promotion, publicity, direct marketing
how can promotion have the aimed effect?
promotion must be relevant to your product and target market in order to have the desired effect
define place
to the method or channel of distribution
what is a distribution channel?
the method of getting the product from producer to customer
what are the 3 main types of traditional distribution channels?
producer to customer (business sells directly to the customer)
producer to retailer to customer (business sells to store which sells to customer)
producer to wholesaler to retailer to customer (business sells to intermediary who sells to store who sells to customer)
what is the 3 extended marketing mixes
people (the staff who have contact with customers)
processes (the systems and processes that deliver the product to the customer)
physical evidence (the physical environment experienced by the customer)
